LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 11, 2001
  
  
          TO:  Honorable Robert Junell, Chair, House Committee on
               Appropriations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HJR66  by Isett (Proposing a constitutional amendment
               concerning the restriction on the rate of growth of
               appropriations.), As Introduced
  
**************************************************************************
*  No fiscal implication to the State is anticipated, other than the     *
*  cost of publication.                                                  *
*                                                                        *
*  The cost to the state for publication of the resolution is $80,000.   *
**************************************************************************
  
Currently, Article VIII, Section 22, Texas Constitution, limits the
biennial growth of certain appropriations to the estimated rate of growth
of the state's economy.  The current limit applies only to
appropriations from state tax revenue not dedicated by the constitution.

The resolution proposes a constitutional amendment which, if adopted,
would limit the biennial growth of appropriations in the General
Appropriations Act from all state revenue sources, except federal funds,
to the estimated rate of growth of total personal income in the state.

Currently, the appropriations limit for a subsequent biennium can
increase or decrease as a result of changes in estimated appropriations
for the then current biennium.  The proposed amendment would allow only
net decreases in estimated appropriations to affect the appropriations
limit for the subsequent biennium.

Under current law, the legislature, after adopting a resolution to exceed
the limit by a majority vote in each house, may make appropriations in
excess of the limit.  The proposed amendment would require that a
resolution to exceed the limit receive and a two-thirds vote of each
house.

Under current law, bills making appropriations are sent to the
Comptroller for certification under the Article III, section 49a, "pay as
you go" constitutional limit, but Comptroller certification of
compliance with the Article VIII limit is not required.  Under the
proposed amendment, the Comptroller certification of compliance with both
the "pay as you go limit" and the Article VIII limit would be required.

The amended Article VIII limit would first apply to appropriations for
the 2004-05 biennium.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 307   Secretary
                   of State
LBB Staff:         JK, SD, RS